May 2024 Regulatory Newsletter

May 2024

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AB: Upcoming Changes to Emergency Planning Zones (EPZ)

We want to inform you about an upcoming change affecting all wells in the province: the recalculation of the Directive 056 Emergency Planning Zone (EPZ).

There will be no grandfathering; all wells will be subject to this new requirement.

Previously, D056 EPZ calculations were based on the average values, pursuant to CAPP guideline 2012-0008, H2S Release Rate Assessment and Audit Forms.

Moving forward, the EPZ will be calculated based on the maximum values. The release rate remains unchanged, but the EPZ will have to be recalculated and submitted to the AER.

The AER plans to announce this change within the next few months.

Stay tuned for future updates.

AB: Deadline to apply for the Emerging Resources Program

The Emerging Resources Program (ERP) was introduced in January 2017 as one of two new royalty programs under the Modernized Royalty Framework.

The intent of the ERP was to encourage the development of oil and gas resources in higher-risk and higher-cost areas that have large resource potential.

Applications to this program can only be made on or before December 31, 2024. The program regulations and guidelines can be accessed on the Government of Alberta website: https://www.alberta.ca/oil-legislation-guidelines-and-policies

Additional information can be found: Information Bulletin 2024-02

SK: Orphan Fund Levy

On April 19, 2024, the ER announced that the 2024 Orphan Fund Levy has been set for $6 million and invoices are available now through IRIS.

The orphan levy evaluation is based on industry’s deemed liability under the LLR Program on May 4, 2024.

Please refer to the Orphan Fund Levy webpage for further information.

SK: Amendment to PNG014: Incident Reporting

On April 24, 2024, the ER released the notice of the proposed amendments to PNG014: Incident Reporting Requirements.

The deadline for industry consultations is June 6, 2024. The written comments on the proposed amendments can be directed to er.servicedesk@gov.sk.ca.

Once the consultation period has concluded, ER will review all consultation feedback in the preparation of a final draft of the amended directive. The amended directive is expected to come into effect in summer 2024.

Additional information can be found HERE

BC: Area Based Analysis (ABA) planning tool update

On May 15, 2024, the BCER announced that will be retiring Area-based Analysis (ABA) a planning tool used to consider the combined effects of industrial development and replace it with new approaches to support the consideration of cumulative effects and treaty rights.

Under the new approach, a mitigation plan is required for any application intersecting a Wildlife Habitat Area (WHA) or Ungulate Winter Range (UWR) or an Old Growth Management Area (OGMA). Effective Aug. 1, 2024, new mitigation plan guidance will ensure a consistent and streamlined approach to submitting measurable and specific commitments.

Additional information can be found here: TU 2024-04

BC: Multi-year Aerial Leak Survey of Decommissioned Wells Report

A multi-year aerial survey of 1,221 decommissioned wells in northeast BC between 2017 and 2023 found less than one per cent had a confirmed methane leak.

More information on the aerial methane survey, including a map and details of each annual survey, can be found in the summary report. The BCER intends to continue its aerial survey program in 2024.

Additional information can be found here: IU 2024-07

BC: Permits Required for Hydrogen, Ammonia and Methanol Operators

All operators of existing or planned hydrogen, ammonia, or methanol manufacturing facilities in BC must apply for permits from the BCER.

Individuals or companies currently producing hydrogen, ammonia, or methanol who have not previously contacted the BCER, as well as potential future operators of such production facilities, are required to contact the BCER directly. This is necessary to discuss the regulatory framework and the process for submitting permit applications under the Energy Resource Activities Act.

The approach to regulating hydrogen production is explained here.

Additional information can be found here: IU 2024-08

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